What a Rehab Loan Means For Home Buyer

What you need to know about 203k Rehab Loan first:

- The FHA 203k lender will loan the funds to buy the home AND the additional  money to complete any repairs all in one mortgage

- You still get a low fixed rate (usually slightly higher than a regular FHA loan)

- You are only required to put down 3.5% and this can be a gift

- FHA 203k loans require that you occupy the property as your primary residence

- The property can be 1-4 units, not just a single family home

- Use the 203k loan to convert a single family property to a multi or vice versa

- FHA 203k maximum loan limits vary depending on geographical

- FHA 203k rates are slightly higher than a normal FHA home loan

- You can get an FHA purchase rehab loan on a mixed use property and condos

With so many bank foreclosures on the market that need repairs to bring them back to their former or better selves, the 203k loan is ideal!  If you, the home buyer, can look past the debris, the holes in the walls, the stained carpets or missing carpet or other (minor or major) damages, to see the potential of the home, this loan program may be perfect for you. 

It’s your opportunity to make the eyesore in your favorite neighborhood your ideal home for possibly less than it would cost to find exactly what you are looking for in that same neighborhood.

If this idea sounds good to you, talk to me, Jennifer C. Core, Realtor with Exit Realty Central, who can help you see past the “rough” to see the diamond. 

Looking to buy or sell a home in Dayton or her surrounding areas? Contact me, Jennifer C. Core, at Jennifer@ExitDayton.com.  See more homes from your computer, go to my website:  www.JCore.ExitDayton.com